Need Advice (by GKARL [PA]) May 12, 2022 9:42 AM|
Need Advice (by Dee Ann [WI]) May 12, 2022 9:45 AM
Need Advice (by Jason [VA]) May 12, 2022 10:02 AM
Need Advice (by Sisco [MO]) May 12, 2022 10:19 AM
Need Advice (by Allym [NJ]) May 12, 2022 11:06 AM
Need Advice (by MikeA [TX]) May 12, 2022 11:55 AM
Need Advice (by Jim in O C [CA]) May 12, 2022 12:20 PM
Need Advice (by LisaFL [FL]) May 12, 2022 12:38 PM
Need Advice (by S i d [MO]) May 12, 2022 12:47 PM
Need Advice (by Robert,OntarioCanada [ON]) May 12, 2022 1:03 PM
Need Advice (by Ray-N-Pa [PA]) May 12, 2022 1:06 PM
Need Advice (by Jason [MI]) May 12, 2022 1:13 PM
Need Advice (by Robert J [CA]) May 12, 2022 1:16 PM
Need Advice (by Laura [MD]) May 12, 2022 1:52 PM
Need Advice (by Dave [MO]) May 12, 2022 2:35 PM
Need Advice (by myob [GA]) May 12, 2022 4:26 PM
Need Advice (by Oregon Woodsmoke [ID]) May 13, 2022 9:50 AM
Need Advice (by James [GA]) May 13, 2022 4:39 PM
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Need Advice (by GKARL [PA]) Posted on: May 12, 2022 9:42 AM
I have a single family that I'm currently renovating that's in a solid B class area. Renovations involve putting in a new kitchen, painting and flooring. I'm considering the following:
1) Keep it as a rental. If I do, I'll cash flow between 500 to 700 a month after reserves and debt service. The place is in a good area and there would be no shortage of good tenants.
2) Sell it. I would net about 100K. I can invest that in a Opportunity Zone LLC that I have set up already and defer the taxes on the gain until 2026. I would probably pay off a couple of debts that the LLC owes that would save about $ 400 in monthly cash outlay. (i.e. create a little less than the cash flow I'd get from keeping the house and renting). That would use up about half of the money. The other portion of the money would sit and either be used to invest in another MFH (if I can find one) or just held in reserve for the taxes due 4 years from now. Ideally, I would need to invest in another Opportunity Zone property which either means a vacant or rehab opportunity in my area, but those are in very short supply right now.
Based on the fact situation, which way would you go? --209.122.xx.xxx
Need Advice (by Dee Ann [WI]) Posted on: May 12, 2022 9:45 AM
I would keep the single family as a rental; but that's me. --75.11.xx.xx
Need Advice (by Jason [VA]) Posted on: May 12, 2022 10:02 AM
Iíd keep it. I sold my biggest dog last year and Iíve regretted doing so. Deals are so far and few between lately. --50.202.xxx.xx
Need Advice (by Sisco [MO]) Posted on: May 12, 2022 10:19 AM
GKarl, when do you plan to quit working?
If you are within 7 years of quitting, sell. If not, keep it. --149.76.xxx.xxx
Need Advice (by Allym [NJ]) Posted on: May 12, 2022 11:06 AM
We don't know how much trouble DC is going to make. My spidey sense says keep it and make money on it with the rents. --108.24.xx.xx
Need Advice (by MikeA [TX]) Posted on: May 12, 2022 11:55 AM
All other things aside, $5-700/month that will increase with inflation is better than a fixed $400 per month. As a rule it's not good to eat the duck that lays the golden eggs.
The only thing that would sway it otherwise is a decline in the neighborhood, a decline in prices (sales and rents), or some unexpected expense that would wipe out the difference. Most of those are temporary setbacks and won't affect the return long-term.
Need Advice (by Jim in O C [CA]) Posted on: May 12, 2022 12:20 PM
I would keep it. I have a great retirement because of properties like that. --89.45.xx.xxx
Need Advice (by LisaFL [FL]) Posted on: May 12, 2022 12:38 PM
It depends on how many you have, what other investments you have, when you plan to retire, how much you enjoy being a landlord, etcÖ.
I have been doing renovations/upgrades when people move (started about four years ago). I sell after fixing up in most all cases. Iíve sold 18 and have around 18 left. Now is a great time to be selling.
But in my case when I started selling I was around 56 and I realized if I sold 3 a year Iíd be almost 70 by the time they were gone. So I decided to start so I could spread out the sales. I really donít want to be an old lady with more than a dozen rentals to manage. So I have about six more to sell. But I donít want to run people out if I donít have to so it may go slower than I hoped.
So only you can decide whatís best for you. None of us can predict the future. If that was the case the ones I sold in 2017-2019 I would have wanted to sell in 2020-2022.
I sold one in Feb 2020 (start of Covid) for 220k. Thought I did fine as I bought it in 2013 for 103k. New owner resold it 18 months later in Oct 2021 for 375k. They made more on it in 18 months than I did in 7 years. Crazy market in Florida. --75.89.xxx.xxx
Need Advice (by S i d [MO]) Posted on: May 12, 2022 12:47 PM
I would keep it.
Main reason: I do not like climbing into bed with the Govt. Yes, it may be possible once you twist yourself like a Cirque du Sole contortionist you might possibly come out a little bit ahead, but I see laws changing by the month, and there's no way I'd want to be locked into a 4-year long deal where the Govt can change the rules at any time because... "fairness and feelz".
I know some folks have made fortunes by knowing the right people in power. I do not know the right people in power. Thus, I stay with the private market, for as long as the Govt stays reasonably butted-out of it.
Need Advice (by Robert,OntarioCanada [ON]) Posted on: May 12, 2022 1:03 PM
Not much new housing is being built which are single family homes or multi residential where as immigration increases then the supply of all housing goes down. The situation in Ukraine has already caused housing supply here to go down. Inflation is going to make new builds really expensive. Unless going to retire then can keep for a few years or more. --68.69.xxx.xxx
Need Advice (by Ray-N-Pa [PA]) Posted on: May 12, 2022 1:06 PM
I can't speak for opportunity zones out your way but around here that is code for transitional neighborhood.
Gamble and get it right you - you make out alright. Gamble and loose - you loose your initial investment money and defer some payment of taxes.
Since this is a class B, this tends to be my keepers. If it was a class C or in an opportunity zone now, I would start eyeing up replacement properties.
Your option two is interesting in that you might be splitting up the money. I haven't heard of doing a split like that out here. --24.101.xxx.xxx
Need Advice (by Jason [MI]) Posted on: May 12, 2022 1:13 PM
Depends on your market..
If you can sell an pick up some good deals then I would sell...if not hold it.. by me foreclosures are picking up an I am buying an selling on land contracts.. was 8% interest but will be going up
Need Advice (by Robert J [CA]) Posted on: May 12, 2022 1:16 PM
Timing is everything. I was expecting another market crash by now. I've lived through 3 complete cycles in the last 44 years. Sometimes I sold and used the funds to pay off other mortgages, reducing stress letting go of a problem property. But your property isn't giving you a headache. So the only way I can gauge your situation is by the percentage of your real estate holdings vs other assets. If you are over 85% in property, and are over 50 years of age, I'd consider selling and NOT reinvesting in property. Hold back the funds as a reserve. --47.155.xx.xxx
Need Advice (by Laura [MD]) Posted on: May 12, 2022 1:52 PM
Easy, i would keep it. --172.58.xx.xxx
Need Advice (by Dave [MO]) Posted on: May 12, 2022 2:35 PM
I have been on the sell side only because it's a fit for me. Prices are at all time highs and with rates increasing, buyers may not slow down but they won't be able to buy as much house as they could a year ago with the same amount of money. Nobody knows what going to happen with the real estate market.
Do you need the cash or do you want the monthly income?
Right now it's a sellers market and that will change. --173.47.xxx.xxx
Need Advice (by myob [GA]) Posted on: May 12, 2022 4:26 PM
i think of this as YOUR gold mine. Would you sell a gold mine?
Place it in a trust and continue to mine it-- sounds like its ready to go PLATUMIM!!!!
these RENTALS DON'T GROW ON TREES. --99.103.xxx.xxx
Need Advice (by Oregon Woodsmoke [ID]) Posted on: May 13, 2022 9:50 AM
I suspect that this is a nicer place than some of the other places you own. If you want to sell something, sell one of your less good places and keep this better one. Get rid of the lesser place and use that money to pay off the debts. --76.178.xxx.xxx
Need Advice (by James [GA]) Posted on: May 13, 2022 4:39 PM
I would keep it. As said, don't eat the goose that lays the golden eggs. --75.174.xx.xxx
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